Wednesday, February 9, 2011

Price Matching

I love competition. I think it's a great thing. I do!

Nothing encourages the most dastardly instincts within the depths of our repressed genetic code than the fear of inferiority. It's what kept the Macho Man goin' all these years and it's what provides the foundation for our glorious free market system here on the sunny beaches of North America.

Despite all that, I still hate economics. Go figure.


In any event, there's one practice somewhat new to the game of retail, and that, lady and/or gentleman, is price matching.

You've all seen it before: the big posters over the customer service counter, the TV ads, the radio spots, the bus shelter posters with graffiti relating to an ad that's no longer there - all of them proudly boasting the prices at the shop in question will not be beat!

Mr. Savage would be so proud.

In case you've somehow missed out on the horrors wonders of advertising your entire life (perhaps you've only just now regained your sight and hearing, or are in the process of retraining yourself through a thrilling montage preceded by a daring hospital escape after waking up from a coma - I don't judge), I'll help you out. Price matching involves a customer humming and hawing over a product at Retail Outlet A and then defiantly pronouncing the cost of same item to be lower at Retail Outlet B - essentially the shopping equivalent of a silverback gorilla beating his chest. You see, the beast customer wishes to assert dominance by threatening to take his business to the "more competitive" shop. In theory (and in most practices), the store clerk, unable to combat the customer's mighty display (due in most cases to a handed down policy made by someone who will never have to actually be subjected to it), 'joyfully' acquiesces and grants the client their minor price break.

Ah, but I roll uphill. What fun would this joyfully engaging blog be if I simply stated facts and adhered to them?* When it comes to me, on the other hand, I prefer to call bluffs. I'm the type who will probably get killed on my trip to that new park in San Francisco when the T-Rex escapes and I figure I'll just stare him down. He'll back off. Scientists said these are scavengers!

This is my take on price matching (and it really is simple, look!):
Nobody's forcing you to buy the product at any one store.

That's it, and it's true. Hooray for free choice! If Retailer B has the item cheaper, and you've already gone through the trouble of verifying it, then why not just go there? In my mind, it equates to sitting down at a restaurant, asking to see the chef, pulling out another restaurant's menu, and demanding a dish from there or else.

So I say or else!

The reality is the markup is so marginal on most consumer electronics these days that the prices stores set are just about as low as they can go - at the very least, that's the case with my employer. So, when a customer asks to price match, it's really not a favour to us, it's a favour to the customer. Yes, I know you're thinking that's some seriously arrogant business practice that will lose me customers, but still thy fury whilst you read my anatomy of a price-match request:

- Customer researches product (online or in person)
- Customer finds the lowest price available in his/her geographic area
- Customer decides against shopping at store with lowest price and instead goes to store with higher price
- Customer declares price must be matched, that they like my store and would love to give me the business, but they don't like my price.

This is where the intervention is normally held; where reality must be reasserted. What's wrong with this, you ask, my weary-eyed webcrawler? It's simple: by "giving me the sale," my store is in fact losing money. It's a detriment!

Furthermore, don't act like you're going to take off for the other shop if I don't physically restrain you. Go ahead! If you really wanted to go to Retailer B, you would have in the first place. 99% of the time, Retailer B has a poor return policy, is inconvenient to get to, doesn't give away goodies with the purchase at the time, or simply doesn't have stock.

Yes, I can hear you now, arguing that these will become "customers for life" or my shop will make money on add-on items, or somesuch. The years I've spent in retail have taught me many things. Among them: people looking to spend as little money as possible on a product (to the point where they'll attempt to haggle after a price match request - keep reading for an example) aren't the type of people who are going to spend more money on add-ons. These people are as legible as a highway sign.

In the end, I of course do what the overlords tell me. But if it was up to me (and sometimes it is), I'd whip out my calculator and add up the cost of transportation to get to Retailer B, then encourage my dumbfounded deal-hunter to head on over. Factoring everything in, they'll almost certainly spend more money.

And that's how you close a sale, ladies and gentlemen.


*Today, a traffic light turned red as I approached it. Being a law-abiding driver, I stopped my vehicle. BLOGCITEMENT!

Amusing Anecdote of the Day
[Via telephone]
Customer: "I'd like to buy a camera, but I notice Sloppy Stan's is selling the item for cheaper. Do you price match?"
Me: "In most cases, yes. It shouldn't be a problem as long as Stan has stock. Come on by."
Customer: "Oh good. Because I like you guys more than Stan." (feeble attempt to woo my favour)
Me: "That's...good to hear."
Customer: "Do you throw anything else in with the camera? Like a memory card and a case?" (sure, after taking a profit hit, we'll just give shit away for free, too)
Me: "We do offer a bundle you can tack on which has those items"
Customer: "Well, Stan's giving those things away."
Me: "Like I said, we have a bundle you can add to your camera if you'd like those items."
Customer: "Well, I'll just head on in. I'm sure you can find something to give me when I get there."
Me: "Like...I...said...we will price match the camera for you provided it meets our guidelines. We are not giving anything away with the camera at the moment. If you come in, I'll just tell you the same thing."
Customer: "No, no, I'm sure you'll find something for me. I'll be there soon."

[Customer arrives in store]

Customer: "Hi, I called about matching Sloppy Stan's price on this camera."
Me: "Yes, I remember."
Customer: "So, what are you going to give me for free with it?"
Me: "Like I said on the phone, nothing. We're already matching the price. Use the savings to get an accessories bundle. You'll still come out on top."
Customer: "But you said you'd give me a memory card."
Me: "No, I didn't. I said the exact opposite."
Customer: "I came all the way out here because you told me you could give me a deal!"
Me: "I committed to no such thing."
Customer: "Well, this was a waste of my time! Why did I even bother coming all the way out here?! I'm going to Stan's!"
(Thank you for doing what you should have done in the first place. By leaving, you saved my store money.)


Quote of the Day:
"So how long will this be backordered for?"
"We can't be sure. That's the problem with backorders. It all depends on the manufacturer."
"So...how long?"
"Again, not sure. It could be anywhere from weeks to months."
"So.....two weeks, you think?"
[Facepalm]

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